Final answer:
Accounts receivable (A/R) can increase if a company bills more customers, indicating higher credit sales, while unearned revenues remain unchanged if there are no additional advance payments received.
Step-by-step explanation:
If accounts receivable (A/R) increases while unearned revenues remain unchanged from the prior period, it indicates that a company has billed more to its customers, hence expecting more cash inflows from credit sales, but has not received any additional advance payments against which it has to deliver goods or services. The accounts receivable section reflects the sales that a company has made on credit. An increase in A/R represents earned revenue from credit sales, whereas unearned revenue corresponds only to cash received in advance, which will be recognized as revenue in the future when goods or services are provided. Therefore, it is possible for A/R to increase while unearned revenue does not change.